The arrangement, in practice for three years, allows Amazon to fulfill orders for products such as diapers and toilet paper without incurring transportation and storage costs while P&G boosts online sales and allows it to tap virgin markets. The partnership, under a program called Vendor Flex, could be extended to other suppliers, including Kimberley Clark (KMB).

In pre-market trading, Amazon shares have gained 0.14% to $311.14, while P&G is up 0.2% to $78.90.

At time of publication, Amazon, P&G nor Kimberley Clark had responded to requests for comment.

TheStreet Ratings team rates Amazon.com Inc as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate Amazon.com Inc (AMZN) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."